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2.55% two yr FDIC bank CD at Edward Jones
03-22-2018, 03:52 PM
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#1
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Recycles dryer sheets
Join Date: Feb 2014
Posts: 157
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2.55% two yr FDIC bank CD at Edward Jones
Today my Edward Jones broker sold me a one year Wells Fargo $17K CD at 2.15%.
Also a 2 year $50K CD from Morgan Stanley at 2.55%.
Both are FDIC insured.
I asked my credit union to match, their best offer was 1.8%.
Edward Jones, Fidelity, etc are able to get better CD rates for you due to the volume of money they send to the banks.
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03-22-2018, 04:22 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,606
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How are brokered CDs better than short term bonds?
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03-22-2018, 04:24 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,744
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 Quote:
Originally Posted by GrayHare
How are brokered CDs better than short term bonds?
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Lower risk.
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03-22-2018, 04:28 PM
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#4
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Recycles dryer sheets
Join Date: Apr 2016
Location: Bay Area
Posts: 182
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Yep, I see Fido has the same Wells Fargo 2 year CD available for 2.55% as well as a Morgan Stanley CD for 2.55%. Not sure why one would pick one over the other but you are right in either case they beat Ally Bank's 3-year CD currently at 2.1%.
At the moment I'm not willing to lock in an interest rate for more than 12 months just because I think there is still room to grow, but 2.5%+ sure looks good.
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03-22-2018, 04:29 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,508
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they are brokered CDs. They have different terms than most CDs from the bank directly. So they get better rates. Plus the banks don't have to do the maintaining or selling of the CD.
Likely most major brokers have these.
FDIC insurance
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03-22-2018, 04:51 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,606
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Quote:
Originally Posted by njhowie
Lower risk.
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Because they are FDIC insured, or for other reasons?
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03-22-2018, 04:59 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 36,749
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Quote:
Originally Posted by GrayHare
Because they are FDIC insured, or for other reasons?
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I'm not sure. "Short term bonds" is broad. Treasuries are the same risk as CDs in that the principal and interest is guaranteed by the US government just as CDs are FDIC insured for the same under the $250K limit per bank and account holder.
If you are talking about any other type of bond you have credit risk and default risk.
__________________
Retired since summer 1999.
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03-22-2018, 06:09 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,744
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Quote:
Originally Posted by JohnnyBGoode
Yep, I see Fido has the same Wells Fargo 2 year CD available for 2.55% as well as a Morgan Stanley CD for 2.55%. Not sure why one would pick one over the other but you are right in either case they beat Ally Bank's 3-year CD currently at 2.1%.
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The Wells Fargo pays monthly while the MS is semi-annually.
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03-22-2018, 09:12 PM
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#9
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Recycles dryer sheets
Join Date: Feb 2014
Posts: 157
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I wanted guaranteed value from the CD.
I bought a tractor with dealer zero interest financing for 4 years. I originally had planned to pay cash, so I used the payment money to buy CDs.
I was able to make a tidy little sum on CD interest.
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03-22-2018, 09:31 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,076
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Quote:
Originally Posted by GrayHare
Because they are FDIC insured, or for other reasons?
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I'm thinking because of FDIC and the principle doesn't decline when rates go up so if you have to cash in before they mature you may forfeit some interest but get your principle back. Treasuries will decline in value as rates rise.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-23-2018, 06:52 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,744
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Quote:
Originally Posted by Jxxx
Greetings forum, I hope my initial post is ok, but I was cruising and found this thread.
I was able to find for my clients 3.6%, and the starting amount doesn't even have to be 50-100k like you see for Big Banks.
Not sure if I should say more - don't want to bet banned for my first post  |
If you are not advertising/promoting a product, you won't get banned. Worst case, the post would be removed and you'd get a warning. Post it, folks will certainly comment what they think about it, whether good or bad.
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03-23-2018, 07:17 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 49,813
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Quote:
Originally Posted by Jxxx
Greetings forum, I hope my initial post is ok, but I was cruising and found this thread.
I was able to find for my clients 3.6%, and the starting amount doesn't even have to be 50-100k like you see for Big Banks.
Not sure if I should say more - don't want to bet banned for my first post |
PUBLIC SERVICE ANNOUNCEMENT: Annuity Salesman
From his "About Me":
Quote:
Right now I am offering a rate of 3.6% for a 5 year MYGA which will beat out any CD rate banks can offer you.
(similar to a CD but it's a tax-deferred 5 year annuity)
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__________________
Numbers is hard
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03-23-2018, 07:18 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,744
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Quote:
Originally Posted by REWahoo
PUBLIC SERVICE ANNOUNCEMENT: Annuity Salesman
From his "About Me":
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Thanks!
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03-23-2018, 07:27 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 49,813
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Quote:
Originally Posted by Jxxx
Pretty transparent, both within my profile, and this thread. Does it matter my vocation if I share info that is both truthful and may lead to people earning more on their nest-egg?
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Using this forum for commercial purposes isn't permitted.
From the Community Rules:
Quote:
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...participants may not use the Forum for commercial gain.
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__________________
Numbers is hard
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03-23-2018, 07:27 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,744
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Quote:
Originally Posted by Jxxx
Pretty transparent, both within my profile, and this thread. Does it matter my vocation if I share info that is both truthful and may lead to people earning more on their nest-egg?
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It might be more appropriate on an annuities thread rather than one titled FDIC bank CD.
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03-23-2018, 07:40 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,508
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Quote:
Originally Posted by njhowie
It might be more appropriate on an annuities thread rather than one titled FDIC bank CD.
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+1
plus it is not something he only has.... it is what 5 year MYGA is paying now.
Not that it is bad. One just needs to know what they are buying
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03-23-2018, 09:18 AM
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#17
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Recycles dryer sheets
Join Date: May 2013
Location: Sarasota
Posts: 255
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Quote:
Originally Posted by lwp2017
Today my Edward Jones broker sold me a one year Wells Fargo $17K CD at 2.15%.
Also a 2 year $50K CD from Morgan Stanley at 2.55%.
Both are FDIC insured.
I asked my credit union to match, their best offer was 1.8%.
Edward Jones, Fidelity, etc are able to get better CD rates for you due to the volume of money they send to the banks.
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Edward Jones broker  I would bet that you could save significantly more money by changing brokers to a low cost/do it yourself outfit than getting a slightly better 2 year cd rate while keeping money at EJ. Besides, you can get the same CD at the other guys also. Watch your wallet!! JMHO
__________________
Retired in 2015 at 53
"Things are never as good--or as bad--as they seem."
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03-23-2018, 09:27 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,606
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Quote:
Originally Posted by jazz4cash
I'm thinking because of FDIC and the principle doesn't decline when rates go up so if you have to cash in before they mature you may forfeit some interest but get your principle back. Treasuries will decline in value as rates rise.
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But like a bond a brokered CD also declines in resale value when rates rise, no?
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03-23-2018, 10:13 AM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,076
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Quote:
Originally Posted by GrayHare
But like a bond a brokered CD also declines in resale value when rates rise, no?
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Yes that is correct. I forgot the question was about brokered CDs.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-28-2018, 04:50 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,744
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2-year now at 2.6%
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